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Reasons Why Startups Should Consider IT Outsourcing

Outsourcing software development projects is pretty much in vogue these days especially after the world was hit by the COVID-19 pandemic. At present commencing a business irrespective of the industry is not easy. In fact, today every startup is asked to make a strong online presence to survive in the competition.

In other words, you need to come up with the best software development solutions, or else you could be doomed. Fortunately, there are a plethora of software development companies around and with increasing technology, and ideology, the concept of working within geographical boundaries is no longer applicable.

In fact, people, especially businesses have started trusting companies, especially the ones residing and working from overseas. Not to mention that after the COVID massive hit, the price of considering in-house developers is no longer so convenient. Other factors such as the rise in taxation, and the mentality of covering the loss within a specific time also played a huge role in the businesses to consider IT outsourcing.

And that’s how the concept of outsourcing software development seems to be gaining momentum. The following post emphasizes why you must choose a reliable IT Outsourcing company for your upcoming software project.

What is IT Outsourcing? Does it Have any Potential?

IT outsourcing is the process of using external service providers or third-party service providers to develop the best possible software solutions that assist businesses to gain an edge over their competitors. The concept of IT outsourcing is not new but on a recent basis, it seems to have gained huge momentum, of course, due to the pandemic.

One of the well-known business practices has become the talk of the town, any and every industry vertical seems to be jumping into the lucrative field especially to conduct software development, application development, website development, maintenance, and what not! Now how does all this works, you may ask?

To outsource appropriately, what happens is businesses irrespective of their size and realms, consider third-party or relevant software development teams to accomplish some tech-related tasks. Technically known as service-level agreements or temporary partnerships to ensure that the given work is done within the predetermined time frame and budget.

Types of Outsourcing


Here professionals are hired who are located within your city. If you want to have full control over your project then you must opt for this option.


Nearshore is said when you happen to outsource in the neighboring countries with the same time zone. Here you can communicate with developers without worrying regarding any kind of time differences.


Lastly, here you can outsource to another country. You can save up the most with this option even though you don’t have full control but your software can be developed at a cost-effective price.

Now, why would any business think of outsourcing? The first and foremost reason could be to cut the cost. The next one is to grow the company and the third one is to get access to a huge talent pool, all at once. It’s not just startups but even tech giants like Google, Facebook, Apple that tend to outsource some part of their work as it accesses them to professionals with different expertise.

Application/software development, web development, technical support, database development, telecommunications, networking and communications, data center management, email, security disaster recovery, are some of the core IT services commonly outsourced across the globe.

Now since everyone seems to be going gaga over outsourcing, it’s time to unveil certain reasons why you must consider an offshore software development company.

Top Reasons Stating IT Outsourcing is the Talk of the Town

Outsourcing IT is cost-effective

One of the obvious reasons to outsource IT services is that it is cost-effective. No matter where we belong and how old we are, the price was and the price will always be a differentiating factor. Outsourcing has always been a cost-effective venture and maybe that’s why it seems to be opted by a plethora of people around the globe.

You see, hiring an in-house team of developers can be pretty expensive and daunting at the same time. Right from paying different salaries to bearing the overhead costs, spending time in training the employee, and a lot more. Now what happens when you outsource it, you just have to pay a fixed amount and sit back and watch over the developers and see how they are accomplishing your project.

Also, not to mention that the time duration of the development results in major inflation of the budget. Countries like  North America, South America, Europe, and Australia, tend to consider outsourcing due to their expensive service providers. India and the Philippines are the topmost destinations to consider when it comes to outsourcing.

It Outsourcing Is Time-Efficient

The next reason to opt for outsourcing is time efficiency. Generally, software development companies highly tend to rely on two factors, one is time and the other is cost. Of course, this doesn’t mean that they do not give importance to the quality of the work but time and cost are given equal importance here.

Since outsourcing companies have been working on specific time frames, they do carry how to balance things and deliver optimum results even before the estimated time.

So yes, time optimization is a crucial reason to consider IT outsourcing service providers. Now, what happens when you hire an in-house team of developers? Well, first it takes a hell of a lot of time to get introduced to one another and after that, you need to understand each other’s working patterns closely.

Now when you hire a team of offshore developers, they are already well-acquainted with each other and know each other’s pros and shortcomings, so they won’t be facing any adjustment issues. Also, they don’t have to adapt to your working culture as they will be working from their spaces and comfort zones.

It Outsourcing Offer Access to a Superior Talent Pool

One of the best advantages of choosing an IT outsourcing provider is that you get instant access to a huge talent pool. I mean if you choose an in-house team of developers, then your chances of innovation are pretty limited since the development team is limited. Whereas when you have the option to outsource, the possibilities are simply endless.

You can seek assistance from different professionals at the same time. In fact, here you can get instant access to a plethora of developers who are rich in expertise and experience.

Not to mention that whenever you think of IT outsourcing, feel rest assured because you will be receiving services on an international level. So yes, tapping into a wider pool of talent is not that bad.

Competitive Advantage

Who doesn’t want to gain a competitive edge over others? Everybody wants to, I guess! Companies irrespective of their sizes have started believing in the fact that whether one likes it or not but to deal adequately or to survive in the market, one has to come up with speedy and efficient solutions.

And this is only possible by considering a relevant IT outsourcing company. Now you don’t have to rely on your in-house experts or force them to come up with extraordinary ideas and solutions that help them in achieving global reach.

Here you don’t have to spend much time on project management. On the contrary, the development time has lessened and products or software can be launched in the nick of time and this surely gives you a competitive edge over others.

It Outsourcing Allows Flexibility

Another interesting reason or advantage of IT outsourcing is that it gives scalability and high-end flexibility like never before. Imagine that you are choosing a babysitter, once you have a babysitter on board what happens is you will have more time and ability to focus on other priorities other than the baby.

Similarly, your outsourcing company will ensure to take care of all your tech-related tasks and you can be more flexible and versatile. In fact, it has been observed that those who have outsourced services are found seeking around for new ways to expand their existing business.

So yes, when you outsource you can feel rest assured and divert all your energy towards the creation of something new and beneficial for your existing business.

Ability to Work on Many Projects at the Same Time

Running a business is more like running thousands of things at the very same time. And this is not so easy, even a business person is a human. How can one expect him to be the jack of all and don multiple hats all at once, especially the tech-related hats?

Also not to mention, the ability to work on many projects at the same time offers a competitive edge and high cost-efficiency. You see today, every business aims to promote its services online. That’s the reason why software and app development increases on a daily basis.


So this is it for now! I hope you enjoyed reading the post. In case, if you have any doubts or queries regarding the topic of IT outsourcing, feel free to mention that in the comment section below.


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